Project in progress, but awaiting feasibility study (370 words)

Published: 1/9/2001

Despite both a change of contractor early in 2000 and the recent start made to the construction of the international terminal at Almaty Airport; the airport planned at Kapchagay (65 km to the north of the former capital of Kazakhstan), is still in progress. Ground is, however, yet to be broken by its Turkish contractor DHT. Earlier reports had suggested that the airport was due to be started in May 2000 by another Turkish contractor, Altun Bashlar. The planned airport, costing $450m and capable of handling 1.7m passengers per annum, was to have been financed by a consortium of Japanese, German and American banks. Since then, according to Tuna Gursan, technical manager for DHT, Altun Bashlar had their contract cancelled by the Almaty Region. It was subsequently awarded to DHT in the early part of last year. According to Gursan, the project is currently awaiting the outcome of a feasibility study being undertaken by Bovis (UK company). Although in discussion with the original contractor they have, so far, failed to sign a contract. The study will form the basis for the raising of finance for the new airport (latest estimated build cost of $300m), which will handle approximately one million passengers per year, not including transit passengers. This will be run by a consortium, which will include an international airport operator, when completed. The added attractions of the new airport, with its 3600m runway and 20,000 square metres of terminal buildings, for both carriers and passengers, will be its proximity to a planned duty-free zone, the improved approaches due to the absence of mountains and settlement (in contrast with Almaty's close location) and also the undertaking, by the Kazakhstan Government to DHT, that international cargo and passenger flights will be transferred to the airport upon its completion. The latter commitment would seem to completely undermine the viability of Almaty Airport and also put into question, if it is adhered to, the possibility of Almaty's city authorities buying the airport from the struggling government air holding company, Air Kazakhstan Group - a move recently welcomed by the country's President Nursultan Nazarbayev, who is undoubtedly eager to get rid of, what has been, a prolonged problem for the Kazak Government.

Article ID: 2277